All posts tagged Narayana Kocherlakota

Low government bond yields in the U.S. and other wealthy nations are worrisome because they suggest investors lack confidence in the ability of the Federal Reserve and other central banks to hit their inflation targets, Minneapolis Fed President Narayana Kocherlakota said Tuesday. Read More »

Top Federal Reserve officials have been relatively quiet ahead of their policy meeting Tuesday and Wednesday. The central bank’s rate-setting Federal Open Market Committee is likely to repeat in its statement Wednesday that it can be “patient” about raising rates. Translation: No moves for at least the next two meetings, or not until June at the earliest. Here’s a sample of Fed officials’ recent comments. Read More »

One of the Federal Reserve officials who cast a dissenting vote at this week’s policy meeting said Friday the central bank is playing a risky game that could lead to further declines in inflation. Read More »

Households surveyed by the University of Michigan early this month said they expected consumer price inflation five years from now to be 2.9%. That is up from an expectation of 2.6% inflation when they were surveyed last month and in line with the 2.9% average of the past decade.

The survey showing stable expectations, released Friday, is one last bit of data that might give Federal Reserve officials some comfort as they prepare to gather for their final policy meeting of the year Tuesday and Wednesday. Read More »

In the weeks since their October policy meeting, Federal Reserve officials have moved ever so gingerly to prepare the public for the day when they start raising short-term interest rates from near zero. While few officials changed their predictions about the likely timing of rate increases—most favor some time next year—they acknowledged continued growth in the economy and emphasized that their decision will depend on how the economy evolves. Most viewed labor market improvements as genuine, but officials sparred over whether weak inflation might cause them to wait longer before raising rates.

Here’s a sampling of what Fed officials have said about the outlook for the economy and monetary policy since their last meeting. Read More »

Federal Reserve Bank of Minneapolis President Narayana Kocherlakota, the U.S. central bank’s strongest advocate of taking aggressive action to help the economy, announced Friday that he is stepping down when his term ends in early 2016. Read More »

Minutes of the Federal Reserve’sOctober policy meeting said officials collectively agree that failing to hit their 2% inflation target from either above or below is equally unwelcome.

So what to make of the divergent comments on the topic by several Fed officials in recent weeks? With inflation running below target for more than two years, they have provided a surprisingly diverse range of individual responses. Read More »

Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said on Wednesday financial markets could face less than placid waters in coming years.

“I would expect that as we move forward, we’re going to see low interest rates by historic standards,” Mr. Kocherlakota said in response to audience questions following a speech in Eau Claire, Wisc. “That’s going to translate into more volatility in asset prices,” he said. Read More »

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